ICTSI pushes port expansion, acquisition with $450-M capex
Despite a decrease in income in 2023, billionaire Enrique K. Razon, Jr., chairman and president of the International Container Terminal Services, Inc. (ICTSI), vowed to pursue an aggressive port expansion and acquisition with $450 million capital expenditures (capex) set for the year.
During the company's first annual stockholder's meeting this year on April 18, Razon assured the firm's shareholders that it will seize opportunities to expand its operations in the regions they serve.
"We intend to pursue further growth in 2024 as we employ our strategy of operating gateway terminals where we have management control in locations with favorable competitive dynamics and high growth potential, while expanding our operating terminals to ensure our resilience," he said.
This year's capex will be used to "complete the expansion in Brazil and the development of East Java Multipurpose Terminal (EJMT); continue the ongoing expansion in Mexico, Philippines and Democratic Republic of Congo (DRC); pay the last tranche of concession extension related expenditures in Madagascar; develop the recently acquired terminal in Iloilo in the Philippines; equipment acquisitions and upgrades; and for capital maintenance requirements," said Razon.
Around $60 million of the total capex 2024 figure was capex carried forward from last year.
For the full year 2023, capex was logged at $336.32 million, excluding capitalized borrowing costs, which was spent on expansion projects for the Contecon Manzanillo S.A. (CMSA) in Mexico, Manila International Container Terminal (MICT) in the Philippines, Victoria International Container Terminal (VICT) in Australia, Matadi Gateway Terminal (MGT) in the DRC, Rio Brasil Terminal (RBT) in Brazil, Onne Multipurpose Terminal in Nigeria and EJMT.
To help it reach its goals, the company secured its largest credit facility loan worth $750 million from the Metropolitan Bank & Trust Co. (Metrobank) in August last year, valid for six years, to expand its port operations, particularly for refinancing of short-term obligations and funding strategic mergers and acquisitions.
In terms of net income attribute to equity holders, the company saw a decrease by 17 percent to $511.53 million from $618.46 million last year primarily because of "non-recurring and non-cash impairment of goodwill to the acquisition of Pakistan International Container Terminal (PICT) in Karachi, Pakistan," as well as "increase in depreciation and amortization, interests on loans, lease liabilities and concession rights payable, and equity share in net loss of joint ventures."